General Dynamics lifts 2026 outlook as backlog and cash flow surge
General Dynamics beat third-quarter expectations, raised its full-year outlook and reported strong bookings, cash generation and a $220.3 billion backlog.
General Dynamics reported $14.566 billion in third-quarter revenue, up 12.9% from the year-ago period, while diluted EPS rose 15.7% to $4.49. Operating earnings increased 14.7% to $1.527 billion, lifting the operating margin to 10.5%, 20 basis points above last year.
The result exceeded reported market expectations of about $13.69 billion in revenue and $4.14 in EPS in one widely cited consensus snapshot. The comparison is directional because consensus estimates vary by provider; the company figures come from its SEC-filed earnings release.
Cash generation was a central strength. Operating cash flow was $1.710 billion, equal to 139% of net earnings, and free cash flow was $1.229 billion in the quarter and $4.827 billion through nine months. General Dynamics also paid $429 million in dividends, spent $481 million on capital expenditures and reduced total debt by $500 million; cash ended at $4.388 billion versus $2.333 billion at year-end 2025.
Orders reached $98.8 billion, including $93.8 billion in defense segments, and the company-wide backlog rose to $220.3 billion. Marine Systems revenue grew 21.1% year over year and Aerospace operating earnings rose 19.3%; Combat Systems operating earnings declined 1.5%, showing that the quarter was strong but uneven across businesses. The backlog supports visibility, while balance-sheet and cash-flow data show capacity for dividends, investment and debt reduction. These are reported results and company guidance, not a guarantee of future performance.
Revenue
$14.566B
↑ +12.9% year over year
Diluted EPS
$4.49
↑ +15.7% year over year
Backlog
$220.3B
Q3 book-to-bill
6.8x
Sources
Quarterly revenue, General Dynamics
Margins by quarter
Twelve quarters of figures
| Quarter | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $10.2B | $10.6B | $11.7B | $10.7B | $12.0B | $11.7B | $13.3B | $12.2B | $13.0B | $12.9B | $14.4B | $13.5B |
| Revenue growth | 10.5% | 6.0% | 7.5% | 8.6% | 18.0% | 10.4% | 14.3% | 13.9% | 8.9% | 10.6% | 7.8% | 10.3% |
| Operating margin | 9.5% | 10.0% | 11.0% | 9.7% | 9.7% | 10.1% | 10.7% | 10.4% | 10.0% | 10.3% | 10.1% | 10.5% |
| Net income | $744M | $836M | $1.0B | $799M | $905M | $930M | $1.1B | $994M | $1.0B | $1.1B | $1.1B | $1.1B |
| Diluted EPS | $2.70 | $3.04 | — | $2.88 | $3.26 | $3.35 | — | $3.66 | $3.74 | $3.88 | — | $4.10 |
| Cash from operations | $731M | $1.3B | $1.2B | −$278M | $814M | $1.4B | $2.2B | −$148M | $1.6B | $2.1B | $1.6B | $2.2B |
| Capital expenditure | $212M | $227M | $304M | $159M | $201M | $201M | $355M | $142M | $198M | $212M | $609M | $203M |
| Free cash flow | $519M | $1.1B | $892M | −$437M | $613M | $1.2B | $1.8B | −$290M | $1.4B | $1.9B | $952M | $2.0B |
| Dividends and buybacks | $648M | $419M | $360M | $466M | $423M | $434M | $1.7B | $983M | $402M | $403M | $442M | $622M |
This story describes figures the company has published. It is for information only and is not investment advice or a recommendation to buy, sell or hold any security. Check the original filings before relying on any figure. Stoqly is not affiliated with the SEC or General Dynamics.
